What is Shared Value?

Shared value is a strategy that encourages companies to tackle social or environmental issues in ways that also enhance their commercial success. Unlike standalone CSR efforts, shared value is deeply embedded in the brand’s identity, creating sustainable growth and strengthening loyalty.

Why Shared Value Matters

Consumers increasingly favour brands with a purpose beyond profit. Shared value fosters trust and loyalty, demonstrating that purchases contribute to causes customers care about. Brands that embrace shared value differentiate themselves, creating a lasting bond with their audiences.

How Brands Can Build Shared Value

Define Core Values with Purpose: Start with a set of guiding values that reflect the brand’s purpose and align with its customers’ values. This alignment forms a narrative that resonates with audiences who care about the same causes.

Identify and Address Societal Needs: Focus on issues relevant to the target audience—such as environmental sustainability, social justice, or economic opportunity. By tackling these issues, brands make a positive difference while strengthening their reputation.

Embed Purpose into Every Interaction: Ensure shared value is evident at every customer touchpoint, from messaging to customer service. A cohesive experience reinforces the brand’s purpose consistently.

Shared Value in Action

IKEA combines affordability with a strong commitment to sustainability, embedding environmentally responsible practices across its business. The brand sources materials like wood and cotton from sustainable suppliers, prioritising renewable, recyclable, and ethically obtained resources. IKEA also aims to power its stores and production facilities with 100% renewable energy, investing heavily in solar and wind power to reduce its carbon footprint. Additionally, IKEA offers products designed to help consumers live more sustainably—such as energy-saving LED bulbs and modular furniture that’s easy to recycle or repurpose. These efforts resonate deeply with eco-conscious customers, reinforcing IKEA’s position as a brand that values both accessibility and environmental responsibility, making a lasting impact beyond just furniture sales.

Creating shared value helps companies become more than just businesses—they become part of a movement. Brands that make a genuine impact build trust, foster loyalty, and contribute to a better world while driving commercial success.